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Closely Held Corporation Definition and Explanation PDF | Download eBooks

Learn Closely Held Corporation definition in strategic management with explanation to study “What is Closely Held Corporation”. Study closely held corporation explanation with strategic management terms to review strategic management course for online MBA programs.

Closely Held Corporation Definition:

  • A corporation owned by a limited number of people who do not trade the stock publicly.

    Management by Stephen P. Robbins, Mary A. Coulter



Closely Held Corporation Explanation:

A firmly held organization is any organization that has just a set number of investors. Frequently, its stock is traded just rarely yet which are regularly recorded on open trades (despite the fact that they frequently additionally exchange on over-the-counter (OTC) trades). These elements contrast from exclusive firms that have stock that isn'T traded on an open market on a trade (neither recorded nor OTC). The individuals who possess portions of firmly held partnerships ought to counsel a monetary organizer with skill in the duty and home consequences that accompany this kind of stock since inquiries of liquidity, insider status and greater part partner duties may become an integral factor. A firmly held organization, likewise alluded to as a shut enterprise, is a firm whose stock is held by few individuals. While this may incorporate customary financial specialists, it might likewise be held by the relatives or different insiders related with a specific business. To qualify as a traded on an open market organization with firmly held status, a base number of offers must be held by people outside the business, for example, individuals from the general population on the loose.

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